Petrovac is located on the coast between Budva and Bar, where the old mountain road from Podgorica reaches the coast. It has a 600 m long sandy beach and it is a popular tourist destination. Petrovac is seen as a somewhat "calmer" resort, in contrast to the lively and developed nearby towns of Budva and Sutomore.

The history of Petrovac began in Roman times, when a couple of villas were built at Krš Medinski: a 4th-century mosaic floor, remains of a villa and baths have been found behind St Ilija's church.[1] Later, there was a Slav village. The village was first mentioned in the Chronicle of the Priest of Duklja. At the northern end of the bay is a 16th-century Venetian fortress, Kastel Lastva, built to discourage pirates.[1] The name, Petrovac, was given at the beginning of the 20th century after King Peter I Karađorđević. Before, the name was Kaštel Lastva.

In the bay are two islets (Katič and Sveta Neđelja), one of which is topped by a small chapel, built in thanksgiving for a shipwrecked sailor's life.[1]

At the beginning of the 20th century, Petrovac had around 300 inhabitants.

Between the two world wars, Petrovac was famous as a popular destination for wealthy tourists from (the former) Yugoslavia. Petrovac is today a popular summer beach resort, its visitors coming predominantly from Montenegro and Serbia. Tourist accommodation has expanded greatly in recent years, although less obtrusively than at Budva and the quality has also improved in response to market demand. The resort's main attraction is its beach. There is a night club in the old castello.

There is ready access to neighbouring beaches at Lucice and Buljarica.

In the 21st James Bond film, Casino Royale, Petrovac was the location of the eponymous casino[citation needed]. In the film, little is seen of the town, only the casino's environs and an outdoor cafe. A part of the movie Brothers Bloom was filmed in Petrovac. The locality has often been used in music videos of regional singers.